The Advantages And
Disadvantages Of Buying An Existing Restaurant
Versus Developing A Restaurant From Scratch
Advantages in
Purchasing an Existing Restaurant
1. Less financial risk
especially if you’re buying an existing business
that is profitable.
2. There is a quicker
opening time versus all the red tape you need to go
through in a new development.
3. At times there is
seller financing and SBA bank financing available.
4. You have an
opportunity to capitalize on the existing customer
base of the restaurant purchased.
5. You can purchase an
existing restaurant at significantly less than a new
start up.
6. If the premises
lease is assigned the rent can be significantly less
than a new market premises lease.
7. If purchasing a
going concern business, (a business that is
profitable), you have positive cash flow
immediately.
Disadvantages in
Purchasing an Existing Restaurant.
1. If an assets in
place purchase, (a business that is not profitable
or marginally profitable and needs a new concept),
the poor reputation of the prior business can
precede the new owner.
2. There is greater maintenance and repair costs due
to the age of the physical assets.
3. A brand new restaurant projects a fresh new image
to the customers and attracts more curiosity seekers
initially, but this is not always the case.
In my opinion, it is more prudent to buy an existing
restaurant versus developing a new restaurant from
scratch as the advantages far out weigh the
disadvantages and most importantly the risk factor
is greatly diminished.
World Famous A.
Sabella's Restaurant At Fisherman's Wharf In San
Francisco Is For Sale
Restaurant Realty Company recently listed A.
Sabella’s Restaurant at 2766 Taylor Street at the
corner of Jefferson in San Francisco, one of the
best locations anywhere. Few restaurants have such a
rich history. This one has been in the family for
110 years. Anton and Laureen Sabella, the current
family members who own and operate this renowned
restaurant have decided to retire from this business
as they desire to pursue other interests.. The
restaurant contains 15,500 square feet of space with
close to 400 seats and has a spectacular views
overlooking Fisherman’s Wharf, the San Francisco
Bay, Golden Gate Bridge and Alcatraz. The restaurant
includes an extensively equipped kitchen (hotel
style), a main dining room which seats 140, a
cocktail lounge which seats 65 and two banquet rooms
which seat 110 and 65. A long term lease is
available. For further information please contact us
at 415-945-9701.
Restaurateurs of the Quarter - Haig And
Cynthia Krikorian And James Landes
We
recently sold Jimmy Beans Cafe at the Haas Business
School at the University of California in Berkeley,
which was owned by Haig and Cynthia Krikorian and
James Landes who are successful restaurant owners
and operators.
The Krikorian’s, who have had more than 20 years of
restaurant experience, operate Lalime’s, one of the
most successful restaurants in the SF Bay Area which
has been in business since 1985. Haig Krikorian is
one of the Bay Area’s most highly regarded chefs and
has been recognized in numerous publications in the
world of cuisine. Lalime’s is located at 1329 Gilman
St in Berkeley and serves dinner 7 nights a week.
Their phone number is 510-527-9838 and website is
www.lalimes.com.
James Landes, who was formerly Vice President of
Chemical Bank in Acquisition Finance, and the
Krikorians founded Jimmy Beans which is located at
the corner of 6th St and Gilman in Berkeley. Jimmy
Beans serves high quality (everything is made from
scratch) breakfast and lunch and their phone number
is 510-528-3435 and their website is
www.jimmmybeans.com.
Their newest concept is Fonda (which means cafe in
Spanish) which serves Latin cuisine in a small plate
format and has an extensive wine list and full bar.
The decor is dramatic yet comfortable with a variety
of seating styles including window and outdoor
seating as well as comfortable lounge seating
upstairs. Fonda is located at 1501 Solano Ave in
Albany and their phone number is 510-559-9006.
We wish Haig and Cynthia Krikorian and James Landes
continued success in their future endeavors.
